Good morning, and welcome to Electrolux Professional Group Q1 results presentation. My name is Jacob Rybäck.

I'm heading up Investor Relations and Corporate Communications, and with me, as always, I have Alberto Zanata, CEO, and Fabio Zarpellon, CFO. Let's get started immediately.

Alberto, please, I hand over to you.

Thank you, Jacob, and morning to everybody. Q1, we closed Q1 with challenging results.

We reported declining sales and declining profitability compared to Q1 of last year. Looking into the results, not everything was negative.

Indeed, we had a very good performance in Europe, in Food Europe in particular, where we continued to grow sales and profitability along the trend, the last year trend. In the quarter, we also finally reported a change in trend in Japan.

Japan market was challenging all along 2025, and in the quarter, growth, slight growth was back, both in laundry and in Food and Beverage. The performance in Asia-Pac, not impacted yet by the Middle East crisis, we reported declining sales, but just because of a comparison with the with the previous year quarter where we had the large orders that did not repeat in 2026.

Reality, the underlying business is improving in the in the APAC region. The only area where we have The two areas where we had declining profitability declining performances is US, Food and Beverage, where the negative trend started after the summer 2025 continued also in Q1 this year, and laundry.

Laundry, it is important to mention that the underlying performances have been positive. We grew volume, and we reported a negative sales and margin only because of the impact of tariff and currency not yet compensated with price.

Also this one is a comment that is important to underline. We have in place price increases that will compensate currency and tariffs on a full-year base, not yet in Q1, but that is what is always happening in the meaning that the first quarter is a quarter where we typically invoice the product that we have in stock, in the order stock, from the previous year.

The other element that is on the positive side is our efficiency program, the program that we launched in September, program that is progressing very well, both in term of people that are leaving the company, but also the move of the production. I was in Aubusson a couple of weeks ago, and the full production of coffee has been transferred and the lines are working, production is there, benefit as respected.

Already in the quarter, we have roughly 19 million of savings, and these savings will increase quarter by quarter all along the year. I think I already mentioned by geographies the different trends.

US is the challenging area with two different dynamics related to the result of Food and Beverage and laundry, as I already said earlier. If we go into the detail of the Food and Beverage business is the one we have the largest impact of the US result, with declining sales and profitability.

In this result, we have also to consider that we have the acquisition cost of Royal Range that are reported inside. Acquisition or integration now of the acquired company in the US that is also in this case progressing progressing well.

Moving on on the laundry on the laundry business, here it is important to underline that the underlying underlying results are positive. We are delivering more units in the market, overall, in particular in the United States.

We are growing sales in the United States. Still still the price that have been applied that has been already executed are not compensating yet the the negative effect of tariffs and currency.

On this on this matter, tariffs, just a word because you know that the rule have been changed, but what we can say is that according to the new to the new directive, there will not be change basically compared to last year in the meaning that it will be slightly worse for laundry and slightly better for Food and Beverage. All in all, nothing changed basically compared to last year, with the difference that this year the negative effect will be compensated by price, as already mentioned.

With this said, I leave Fabio.

Thank you, Alberto, and good morning to everybody. As you heard from Alberto, quarter one was a challenging quarter where we face volumes decline in Food and Beverage, mainly US, and the profitability of laundry was significantly affected by currency transaction effect.

At the same time, we have continued to execute our plan, put in place the condition to restart the profitable growth journey. Let me dig into the P&L starting talking about currency.

Currency since roughly 1 year has started to largely affect our P&L. Few data points regarding quarter one.

Currency translation, we are reporting our performance in SEK, reduce top line roughly 7% and bottom-line EBITA roughly by the same amount, with no material impact in terms of percentage, but a significant impact in terms of absolute value in term of EBITA. At equal currency of last year currency translation, our EBITA this year would have been absolute term roughly 30 million higher.

On top of currency translation, we had a significant impact also to currency transaction that affected both sales and, in this case, margin. Currency transaction in sales affected that also the top line, our organic growth would have been roughly 0.7% higher without the currency transaction effect, and our EBITA value and margin would have been roughly 25 million or 0.9% if we would have been able to invoice the same currency of last year.

A significant impact, both translation and transaction. Going through the P&L, and this you see reflected also into GP3, volume, as Alberto mentioned, mainly related to Food and Beverage in US, where the major disruption ingredient into our profitability.

At the same time, we did continue to work to offset this negative impact and build for a better performance into the future. Price contributed positively in the quarter, specifically the price increase in US were able to cover the tariff impact with a neutral effect in the quarter, a remarkable achievement.

The restructuring cost, Alberto mentioned, deliver significant fixed cost saving, making the company even more agile going forward, and respective improvement in term of benefit will come in the remaining part of this year and in 2027. We continue to invest.

We invest in digitalization, our offer, and in bringing new product to the market. Last year we reached the peak of R&D cost, and as we anticipated, we were foreseeing a decrease of R&D cost for this year, in particular starting in the second half.

We see this already happening in Food and Beverage, not yet in laundry because the laundry colleagues working hard to bring remarkable innovation into the market during the summer. In the remaining part of the P&L, good development of the finance net, significantly lower than last year thanks to reduced borrowing and a cost-efficient funding structure.

Tax rate, no particular comment, in line with a guidance of 26%. Last comment on EPS.

EPS was down roughly 20%, reflecting the income performance. Just a reminder to everybody, 1/3 of this reduction is due to currency translation effect, currency is really impacting our representation of performance, on top of the more business-related ingredient I mentioned earlier.

Cash flow. Cash flow was positive, but roughly 100 million in value below last year.

Two ingredients I would like to point it out. One that is the main source of cash flow that is earning EBITA was roughly 90 million SEK below last year, but I want to mention that we have had cash out for roughly 50 million SEK related to the payment of the restructuring initiative that we have put in place.

No particular comment on the capex. Let me say 45 million was the spend in this quarter.

I confirm the guidance of historical-average spending for the remaining part of the year where we are going to complete major products introduction. What about capital efficiency?

Here you see the development of the operating working capital. We are somehow increasing compared to March last year and compared to the level of we achieve in December.

Few comment about the ingredients. Inventory is stable on the same level of the previous quarter in term of weight on sales.

I believe this is a remarkable achievement considering that we have additional good in transit due to what is happening in the Middle East, making our transportation heavier in term of capital on sea. Our account receivable portfolio is with a good quality.

We have seen the data for March. We have reached a lower value of past due on sales we have had historical since we measure.

The offender on the operating working capital is related to the development of account payable. This is due to the fact that we bought less, the conscious decision, but also we are face situation where in some jurisdiction, one example is Japan, local authorities, in particular for smaller supplier, are imposing standard and shorter payment condition, and we are good citizen and we apply it.

Overall, somehow higher weight of operating working capital on sales, but within, let me say, a good capital efficiency ratio. Last word on the financial position.

Ratio net debt on EBITA is 1.2x after the acquisition Royal Range. I would say pretty strong situation we start second quarter.

In term of borrowing structure, we have a bond that is expiring after the summer, and we are fully equip to manage it. With that, back to you, Alberto.

Thank you, Fabio, and few words about the efficiency program. The efficiency program, as I mentioned earlier, is progressing well.

Factory in Carros has been is still open because we will pay the cost of the factory until the the end of June, but now there is no production anymore. Everything has been moved to the other factory in Aubusson where we concentrated food preparation and coffee in one facility.

The same apply to what is happening to the Sursee factory that will operate until the end of the year, but already the line of the one line of cooking has been moved to to Vallenoncello, and also in this case is operating, and the product have been delivered already from this from this facility. What is important is that we already generated saving in the range of 19 million SEK in Q1.

This is giving us confidence that the the the objective in term of savings will be achieved because if 19 is this quarter, then quarter by quarter, the number of people and, as consequence, cost will decrease. From July, we will not have the cost of the of the factory down in France.

In some way, is also working the upskilling. When we announced this program, we said that obviously one part is the saving, but a second one is to prepare the organization to the new challenging with the both from the commercial point of view to sell the new product that we will bring to market and also the digitalization of the operations.

This is also proceeding pretty well, and we have already brought in people with with a different capabilities. Moving on, Fabio mentioned that we continue to invest in innovation.

The big things is the launch of the cooking, already done, in place, and we are growing sales of horizontal cooking in Europe in Q1, preparing now for the launch of the laundry and the multifunctional cooker after the summer. These are If these are the big ranges that are launching, nevertheless, we have new product also in the other regions.

This is the case of United States where in the at the coming show in Chicago, we receive the Kitchen Innovation Awards for this new features that are, again, creating benefit to customers. The other thing is also about sustainability.

We are very proud to to be already on the 2030 targets now, more or less, but the other important thing is that we start to create value for our customers that that at the end means additional business for us with our thanks to our sustainability leadership. This is a very, very important.

To conclude, challenging quarter, sorry, challenging quarter with declining sales and profitability. The declining sales and profitability mainly related to three things: the the the business performance in the United States, currency, and tariffs.

At the same time, price is in place to mitigate currency and tariffs, and it will be mitigated at the current condition on a yearly basis. Efficiency program generating savings gradually increasing quarter after quarter.

New product coming to market, some already in the market, some close to come. All of this resulting in a positive order intake at the end of March, continuing into into April, and as a consequence, a richer order stock.

With this said, back to you, Jacob.

Thank you, Alberto, and with that, we open up for questions. Please go ahead, operator.

Yes. Hi, good morning, guys.

Thank you for taking my questions. A follow-up on your comments around the new tariffs, the Section 232 here.

As I interpreted, you stated that there's no impact on the group as a whole, i.e., that's slightly worse for laundry, but slightly better for Food and Bev, net-neutral. Is that correct?

Exactly. It is this one.

Follow-up comment is that this is the last quarter where we have a comparison between last year where there was not the negative impact of tariff and currency and this year where there is, and the price increase already implemented from January 1st will compensate both elements on a yearly basis.

The price increases already implemented would also

offset

the new tariffs from

Yes. Because there is no difference compared to last year.

Perfect. That was my question for now.

Thank you so much.

Thanks to you.

Thank you. Few questions, that means that we were clear in our presentation, and with that, I would like to say a special thank you to Alberto for his 25th quarterly report.

It has been a great journey with you over the years. Special thank you and all the best of luck to you.

It's been a great pleasure for us and the investor community to work together with you. Thank you, and goodbye.

Thank you, Jakob.